DGFT gives Clarification in respect of not permitting the Import of the Capital Goods required for distribution of Electrical Energy (Power) under the EPCG Scheme

Jan 07, 2019 | by Avantis RegTech Legal Research Team

The Directorate General of Foreign Trade (DGFT) on January 04, 2019 has given clarificationin respect of "not permitting" the import of the capital goods required for "distribution of electrical energy (power)" under the EPCG Scheme.

The representations have been received from the trade and industry that since in both the Notification No. 35/2015-2020 dated January 29, 2016 and the Serial No.12 in the Appendix 5F of the Public Notice No. 47/2015-20 dated December 06, 2017, the word 'distribution" was missing, the intention of the Government was not to disallow the issuance of the EPCG authorisations for the import of the capital goods required for "distribution" of electrical energy (power) and thus a clarification may be issued allowing EPCG Authorisations for the import of the same. The matter has been examined by DGFT and it has been clarified that the transmission of electricity and the distribution of electricity is nothing but the same process of "supplying of the electricity" from one point to the other.

Therefore, Sr. No. 12 in the Appendix 5F of the FTP 2015-20 did not permit the import of any kind of capital goods for generation, transmission and distribution of power.

[Policy Circular No. 15/2015-20]


URL: http://dgft.gov.in/sites/default/files/Policy%20Circular%20No.%2015.pdf


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